by Dirk van der Kley
It’s often received wisdom that Chinese companies mainly employ Chinese workers on their projects in Central Asia (for example David Lewis of Exeter University recently on the Majlis podcast). This view fails to recognise that Chinese companies have been localising for some time, and that old narratives on Chinese labour practices in Central Asia need to be reexamined.
There is significant evidence of Chinese companies employing Central Asians, particularly in labouring, clerical and interpreting jobs. Criticism of a lack of opportunities in management and technical positions is probably justified but some companies, such as Huawei, offer opportunities at that level too.
Chinese firms are acutely aware of the public relations benefits of hiring (or being seen to hire) locals. Most of the big Chinese projects now purport to employ a significant number of Central Asians. For example, Xinjiang Zhongtai claims that it will employ more than 3000 locals at a textile park it is constructing in Dangara, Tajikistan. These kind of statements are repeated again and again on cement plants, mining companies and oil refineries etc.
By Sarah Lain
Photo credit: Khwahan
First published in The Diplomat, 23 November 2016
On Li Keqiang’s recent visit to Kyrgyzstan and Kazakhstan, the economic emphasis in discussions was China’s objective of helping to increase the countries’ “production capacity.” Building up production capacity is crucial to Central Asia’s ability to boost exports. This will facilitate the trade promotion that accompanies all China’s engagement on the Silk Road Economic Belt (SREB) and broader Belt and Road Initiative (BRI) which will be key to the projects’ long-term success. This is particularly true if China is serious about the project being “win-win.”
During past interviews in Central Asia with experts examining the SREB, concerns were repeatedly raised regarding the lack of clarity on how Central Asian populations will benefit from the project. There is a perceived risk that the “corridors” of China’s overall BRI will mainly provide China with benefits through the transport of resources to China or Chinese goods passing through Asia. It may also benefit political elites, who negotiate many of the deals with Beijing, and who may be in charge of the large state-owned enterprises participating in them. If tangible benefits are not identified and communicated to local populations, then the SREB will not only fail to reach its full potential; it could also raise suspicions that this is more of a geopolitical project than China says, with China benefiting far more than the Central Asian populations and gaining further leverage over the region’s political elites through economic influence. Continue reading